Tesla's second-quarter profit fell by 32% from levels recorded in the first quarter as supply chain concerns and epidemic lockdowns in China slowed the company's electric automobile manufacturing.
Tesla provided a better-than-expected $2.26 billion (roughly Rs. 18,000 crore) net profit for the quarter. However, the Austin, Texas, firm has maintained its 50 percent annual growth prediction for vehicle sales over the next few years, citing supply chain, equipment capacity, and other factors.
In the first quarter of this year, the company raised a record $3.32 billion (roughly Rs. 26,500 crore).
Tesla sales fell to 254,000 vehicles in April and June, their lowest quarterly level since last autumn. However, the company expected record-breaking output in the second half, and said in June it had the highest manufacturing month in its history.
After declining sales figures and CEO Elon Musk's tweets about laying off ten percent of the company's workforce due to worries of a recession, industry analysts had predicted lower earnings. In an interview, Musk described new factories in Austin and Berlin as money furnaces that were losing billions of dollars because supply chain problems limited the amount of cars they could produce.
Tesla earned $2.27 (roughly Rs. 200) per share in adjusted earnings between April and June, versus $1.81 (roughly Rs. 150) per share. Revenue was $16.93 billion (roughly Rs. 1.35 lakh crore), exceeding expectations of $16.54 billion (roughly Rs. 1.35 lakh crore).
Jeff Windau, an Edward Jones analyst, believes the earnings were better than planned. He said that the decrease in automobile revenues from the first quarter was offset by improved energy storage, solar, and services performance.
Musk reiterated his 50 percent annual vehicle sales increase goal, but said the measure is dependent on many factors that the company may not be able to control.
Windau said the prediction demonstrates their trust in their ability to expand the electric vehicle market.
In extended trading on Wednesday, Tesla shares increased 1.6 percent to $753.40 (roughly Rs. 60,000).
The company said it converted 75 percent of its bitcoin investment to government currency during the quarter, adding $936 million (roughly Rs. 7,500 crore) to its balance sheet. It spent $1.5 billion (roughly Rs. 12,000 crore) on the investment last year.
Bitcoin's CEO said the company sold the shares to raise cash because to uncertainty about how long pandemic lockdowns would last in China. Tesla is open to expanding bitcoin holdings in the future.
So yet this year, Bitcoin's price has dropped about 50 percent.
Tesla is seeing signs that inflation may be falling as prices for most commodities decline, but said commodity prices are trending down.
Tesla's Full Self-Driving Beta Test Software is expected to be released before the end of this year to all North American customers who want to buy it. And with regulatory approval, it will be released in Europe and other parts of the world, according to Musk.
Tesla has a vehicle supply problem, not a demand problem, according to chief financial officer Zachary Kirkhorn, who expects to lower prices a bit.